#Liquidity101
🌊 #Liquidity101 – What does liquidity mean in the crypto market?
Liquidity means the ease of buying or selling a currency without significantly affecting its price.
🔹 If the currency has high liquidity, you will find many buy and sell orders, and its price is relatively stable. Like BTC and ETH.
🔹 If liquidity is weak, any large transaction can shake the price significantly... and this is dangerous for traders.
💡 Liquidity affects:
✅ Speed of trade execution
✅ Price spreads
✅ Level of security in entering and exiting
📌 Always monitor trading volume before entering any currency... liquidity is the key to safe exit from the market!
